Forex Videos

Archives

Traders Expect USD to Remain Weak

March 7, 2018 at 18:03by K. Prabhu

Today is rich with macroeconomic events that can influence the US dollar and determine its further dynamics. Today, the US dollar is likely to continue its decline ahead of the release of the US statistics that is expected to be weak. Analysts forecast a slowdown in both employment rate and consumer credit. Moreover, labor productivity can continue to decline. Thus, if the forecasts are confirmed, then the US dollar index is likely to fall to 89.00.

As a result, the EUR/USD pair gains grounds, trying to reach a month high. The euro has already broken through the level of 1.24 against the US dollar. Meanwhile Eurostat experts published the revised GDP data for the fourth quarter of 2017. The Eurozone economy expanded by 2.7%, in line with the forecasts of the analysts and the initial estimate. Nevertheless, the growth rate in the fourth quarter was slightly slower than a rise registered in the previous method. Currency strategists note that tomorrow will be eventful for the single European currency. Traders will increase euro purchases or close long transactions on the EUR/UD pair. At the ECB meeting, officials are expected to change the key interest rate. Despite the fact that their decision is quite predictable, market participants hope to hear hints about the future ECB monetary policy.